Oracle seeks billions for AI infrastructure
The technology company plans to issue $10 billion in bonds and also has a share programme worth up to $20 billion.
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Oracle is seeking to raise billions again to finance its expansion in artificial intelligence and cloud infrastructure. According to a US stock-market filing, the company plans to issue $10 billion in bonds on Monday; it also already has a share programme worth up to $20 billion.
Reuters reported, based on a filing with the US Securities and Exchange Commission, that Oracle plans to offer $10 billion in bonds. According to Reuters, these include both fixed- and floating-rate bonds. The new debt comes on top of a share programme under which Oracle can sell up to $20 billion in ordinary shares.
According to Oracle, the share programme was set up earlier this year and is intended to finance the expansion of Oracle Cloud Infrastructure. In a quarterly report, the company said it incurred $28.5 billion in capital expenditure in the first quarter of its financial year, mainly on data centres. That amount is a company expense, not revenue or profit.
The financing requirement shows how capital-intensive the AI race has become. Companies must pay for data centres, chips, energy supply and network capacity before new customer contracts deliver their full returns. Oracle has previously said it is rapidly expanding its capacity for cloud customers and AI applications.
For investors, there are two sides. Bonds increase interest expenses and debt, while selling shares can dilute existing shareholders' ownership. On the other hand, the investments could allow Oracle to expand its cloud operations if demand for AI computing power remains strong.
The announcement itself says nothing about the returns on the investments. It mainly shows how much money Oracle needs to carry out its growth plans. The central question for investors and customers is therefore whether future cloud revenues can support the financing costs and enormous construction expenses.
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Both sides of the figures
▲ Bright spots
- Oracle can expand its cloud and AI capacity with new financing.
- The company said capital expenditure is mainly going towards data centres, building future capacity.
▼ Concerns
- The company is partly financing major expenditure with debt, which could increase interest expenses and financial risks.
- A share programme worth up to $20 billion could dilute existing shareholders.
Critical note
The $10 billion in new bonds and the share programme are financing, not revenue or profit. The SEC reporting cites $28.5 billion in capital expenditure in the first quarter, but this does not demonstrate that the AI investments will be profitable.
Who notices what
- Investors
- They must take account of additional debt, possible dilution and uncertainty about the returns on AI spending.
- Businesses
- Cloud customers may gain more capacity, but future financing costs could affect pricing.
- Workers
- The data-centre expansion could increase demand for technical and construction jobs, but how many jobs it would create is not known.
Every point comes from the article’s sources and was included in the fact check.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The financial core is based on Reuters and Oracle's SEC reporting. The article distinguishes between debt, equity financing, capital expenditure and revenue, and makes no unsubstantiated claim about future returns.
- confirmed Oracle plans to offer $10 billion in bonds. — Reuters cites an Oracle SEC filing. source
- confirmed Oracle has a share programme worth up to $20 billion. — This is stated in Oracle's SEC reporting. source
- confirmed Oracle reported $28.5 billion in capital expenditure in the first quarter of financial year 2027. — The amount appears in the quarterly report's explanation of the data-centre expansion. source
Editor's note
The $10 billion bond issue and the share programme worth up to $20 billion are separate financing instruments. The precise interest rate, maturities and ultimate proceeds from the bonds were not yet fully known in the sources consulted.Sources
- Oracle to offer $10 billion in bonds — Reuters via MarketScreener
- Oracle 10-Q, August 31, 2026 — U.S. Securities and Exchange Commission
- Charted: Hyperscaler cash grab — Axios
More on this in Dutch media
- Het Parool — „oracle kunstmatige intelligentie”
- de Volkskrant — „oracle kunstmatige intelligentie”
- NU.nl — „oracle kunstmatige intelligentie”